The Best and Cheapest Home Insurance Companies in Illinois in 2026
Allstate sells the cheapest home insurance in IL for most people, with a $350,000 policy costing an average of $1,132/yr. | ||
Home insurance in Illinois costs $2,040/yr, on average. That's about 7% more than the national average. | ||
Homeowners in Chicago pay noticeably more than homeowners in the surrounding areas. |
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Who has the best homeowners insurance in Illinois?
Who has the cheapest home insurance in Illinois?
Allstate has the cheapest home insurance in Illinois no matter how much coverage you need.
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- Allstate also has the cheapest rates no matter where you live in Illinois. Rates can vary almost $1,200 per year depending on where you live in the state.
- Erie is the best option if you have a new home. Its average rate for a newly built home is $718 per year. Plus, Erie has excellent customer service.
- Chubb is a good choice if you have an expensive or luxury home because it has coverage options specifically for expensive houses.
Cheapest home insurance in Illinois by dwelling coverage amount
Key takeaways
- Home insurance rates in Illinois have gone up by about 65% in the last five years. That's the seventh-highest rate increase in the country between 2021 and 2026.
- Farmers and Nationwide increased their rates the most, while Chubb and Country Financial took the smallest rate increases.
- The increased rates could be driven by Illinois' rising risk of wind damage. The state saw 147 tornadoes in 2025, according to the National Weather Service's Storm Prediction Center. That's up from 139 in 2024 and 118 in 2023.
Best and cheapest home insurance for most people in Illinois: Allstate
| Editor rating | |
| Annual cost | $1,132 |
| Monthly cost | $94 |
| Customer complaints |
Pros & cons
- Cheap rates
- Good coverage and discounts
- Local agents available
- Low claims satisfaction
- More complaints than average
Why is Allstate the best?
Allstate's mix of cheap rates and good coverage make it the best home insurance in Illinois for most people.
How much does Allstate home insurance cost in Illinois?
Dwelling coverage limit | Annual rate | % from state avg. |
|---|---|---|
| $200,000 | $962 | 34% cheaper |
| $350,000 | $1,132 | 45% cheaper |
| $500,000 | $1,258 | 52% cheaper |
| $1 million | $1,930 | 67% cheaper |
Allstate has good coverage too, with helpful extra options like coverage for your musical instruments, sports equipment and business items. And you can save with discounts for having a fire extinguisher and smoke alarms, buying a new home or being a first-time homebuyer, and getting a quote before you need your policy to start.
Potential issues
Allstate's customer service isn't always the best.
According to J.D. Power, Allstate's claims service is below average. This could mean it takes longer to get your house fixed after a claim. Customers might also have issues with getting in touch with claims representatives and getting questions answered.
Additionally, Allstate gets about 6% more complaints than average, according to the National Association of Insurance Commissioners (NAIC). Choosing a company with poor customer service can lead to frustrations later on, when you need to make changes to your policy or ask questions.
Best Illinois home insurance for bundling: State Farm
| Editor rating | |
| Annual cost | $1,303 |
| Monthly cost | $109 |
| Customer complaints |
Pros & cons
- Cheap rates
- Good bundling discount
- Local agents across the state
- Customer service is trending down
- Fewer discounts than some companies
Why is State Farm the best?
State Farm is a great option for bundling home and car insurance in Illinois because of its cheap rates and good discount.
In Illinois, a home insurance policy with $350,000 in dwelling coverage costs $1,303 per year with State Farm. That's 36% cheaper than the state average. And full coverage car insurance with State Farm $181 per month in Illinois, about 2% cheaper than average. On top of those cheap rates, customers save an average of 23% by bundling their car and home insurance with State Farm.
State Farm's policies also have a good amount of coverage options to help you customize your policy. Plus, there are local agents across the state to help guide you.
Potential issues
State Farm's customer service has been trending down over the last several years.
State Farm has 23% more complaints about its home insurance policies than expected for a company its size, according to the National Association of Insurance Commissioners (NAIC).
You also can't get as many discounts with State Farm as you can with other companies.
Compare bundling discounts
You could save an average of 27% off your home insurance rate with State Farm if you bundle it with your car insurance.
Company | Avg. home rate | Avg. discount | Rate after discount |
|---|---|---|---|
| Allstate | $1,132 | 27.5% | $821 |
| State Farm | $1,303 | 27.4% | $946 |
| Farmers | $1,841 | 18.3% | $1,504 |
| Progressive | $1,862 | 0.5% | $1,769 |
Rates are for a policy with $350,000 of dwelling coverage. Bundling discount is the amount saved on home insurance only, based on data from three of the most populous states in the country.
Allstate has a slightly higher bundling discount compared to State Farm, and a cheaper monthly home insurance rate. But because Allstate's car insurance rates in Illinois are higher, you'll usually pay less overall with State Farm.
Best home insurance customer service in Illinois: Erie
| Editor rating | |
| Annual cost | $2,098 |
| Monthly cost | $175 |
| Customer complaints |
Pros & cons
- Excellent service
- Above-average claims service
- Local agents available
- Not as cheap as other companies
- Can't buy a policy online
Why is Erie the best?
Erie's customers tend to be very happy with the company's customer service and claims process.
Erie gets very few complaints about its home insurance, according to the National Association of Insurance Commissioners (NAIC). And J.D. Power ranks Erie highly for overall customer satisfaction. J.D. Power also gives Erie an above-average rating for its claims process, which means customers are usually happy with the way Erie handled the process of getting their house fixed after it was damaged.
If you prefer working with an agent in person, Erie is also a good option. The company has agents throughout Illinois that can help you choose the best coverage options for your needs.
Potential issues
Erie isn't a good choice if you want to handle your policy digitally. Although you can get a quote online, you have to contact an agent to finalize the purchase and start your policy.
And if price is your main concern, Erie isn't the best option. Its rates are average, but you can usually get a cheaper policy with several companies, including Allstate and State Farm.
Compare customer satisfaction
Erie and USAA have the best customer service in Illinois. But only people affiliated with the military can get USAA, whereas Erie is available to everyone.
Company | Overall satisfaction | Claims satisfaction | Complaints |
|---|---|---|---|
| Erie | Above average | Above average | Fewer than average |
| USAA | Above average | Above average | Fewer than average |
| State Farm | Above average | Below average | More than average |
| Progressive | Below average | Above average | More than average |
| Allstate | Below average | Below average | More than average |
Overall satisfaction and claims satisfaction is from J.D. Power. Complaint data is from the National Association of Insurance Commissioners (NAIC).
Best home insurance coverage in the Chicago area: American Family
| Editor rating | |
| Annual cost | $2,958 |
| Monthly cost | $246 |
| Customer complaints |
Pros & cons
- Wide selection of coverage options
- Numerous discounts
- Good customer service
- Very expensive rates
- Claims service is slightly below average
Why is American Family the best?
Homeowners in the Chicago area can benefit from American Family's impressive coverage options.
AmFam's policies are more customizable than most company's policies. You can add coverage such as:
- Equipment breakdown
- Home renovation coverage
- Short-term rental coverage
- Credit monitoring coverage
- Flash flood coverage
And if you don't live in Chicago year-round, you can even insure your house as a vacation home or second home.
And American Family offers a long list of discounts, too, including savings for newer homes, renovated homes and smart home systems.
Potential issues
American Family's rates are expensive. In Illinois, a house with $350,000 in dwelling coverage costs $2,958 per year to insure with American Family. That's 45% more than the state average. The company's numerous discounts might help you get a cheaper rate. But even with discounts, AmFam is likely to be pricey.
American Family may not have the best claims process, either. J.D. Power ranked AmFam slightly below average for claims satisfaction.
Compare rates in Chicago
American Family is an expensive choice, but it might be worth it if you need a specialized policy.
City | AmFam rate | % from city avg. |
|---|---|---|
| Arlington Heights | $3,737 | 53% higher |
| Chicago | $4,381 | 40% higher |
| Chicago Heights | $4,088 | 50% higher |
| Chicago Ridge | $3,989 | 59% higher |
| Elgin | $3,627 | 48% higher |
What are the top-rated insurance companies in Illinois?
USAA is the highest-rated home insurance company in Illinois.
USAA has excellent customer satisfaction, according to J.D. Power, and very few complaints, according to the National Association of Insurance Commissioners (NAIC). The company also has good coverage.
But remember that USAA is only available to military members, veterans and certain family members. If you can't get USAA, Allstate or State Farm is a great option.
Company |
Rating
|
Complaints
|
|---|---|---|
| USAA | Low | |
| Allstate | Average | |
| Chubb | Low | |
| State Farm | Average | |
| American Family | Average |
What's the average home insurance cost in Illinois?
Illinois home insurance costs an average of $2,040 per year for $350,000 in dwelling coverage.
That's about 7% more than the national average cost for home insurance, which is $1,902 per year for $350,000 in dwelling coverage.
Average cost of home insurance in Illinois by dwelling amount
Dwelling coverage | Average rate |
|---|---|
| $200,000 | $1,455 |
| $350,000 | $2,040 |
| $500,000 | $2,608 |
| $1,000,000 | $5,913 |
It costs more to insure a home in Illinois than it does in nearby Indiana or Wisconsin, where rates are $1,916 and $1,310 per year on average, respectively.
Illinois is likely more expensive since it is more likely to be hit by high winds and tornadoes than some of the surrounding states. According to the National Weather Service's Storm Prediction Center Illinois recorded 147 tornadoes in 2025. Indiana only recorded 67 tornadoes in 2025, and Wisconsin only recorded 38.
Rates in Missouri are similar to those in Illinois. A policy with $350,000 in coverage costs $2,009 per year, on average, in Missouri. But in Iowa, the same coverage costs an average of $2,357 per year.
Illinois homeowners insurance rates by city
Homeowners in Chicago pay an average of $3,128 per year for home insurance.
But rates depend on where you live in Chicago. In Chicago Heights, the average rate for home insurance is $2,717 per year. But in North Chicago, the average price for coverage is $2,523 per year.
Western Springs, a suburb to the southwest of Chicago, has the cheapest home insurance in Illinois, with an average cost of $2,324 per year. Cypress, in the southern tip of the state, has the most expensive average rate, with a policy costing $3,492 per year.
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Average annual home insurance rates by IL city
City | Average rate | Cheapest company | Cheapest rate |
|---|---|---|---|
| Abingdon | $2,588 | Allstate | $1,031 |
| Adair | $2,764 | Allstate | $1,095 |
| Addieville | $2,959 | Allstate | $1,223 |
| Addison | $2,389 | Allstate | $1,061 |
| Albany | $2,530 | Allstate | $1,146 |
Rates are for a policy with $350,000 of dwelling coverage.
What type of home insurance do I need in Illinois?
Homes in Illinois have to withstand heavy winds, rain, hail, cold temperatures and flooding. Home insurance covers a lot of types of damage, but it doesn't cover everything. It's a good idea to know what things are most likely to damage your home, and to review your coverage with your agent or company.
Does Illinois home insurance cover floods?
Homeowners insurance doesn't cover flood damage. You have to buy a separate flood insurance policy to have coverage for flooding.
According to the Federal Emergency Management Agency (FEMA), flooding is especially common around Chicago, but it can happen anywhere. If you own a house, check what flood zone you're in using the flood map tool from the Federal Emergency Management Agency (FEMA).
Does Illinois home insurance cover tornadoes?
Home insurance usually covers damage from tornadoes. That includes wind, hail and water damage.
According to the National Weather Service's Storm Prediction Center, Illinois recorded 147 tornadoes in 2025. , That's the second-highest number of tornadoes in the country, after Texas.
Most home insurance policies automatically cover wind damage, but you should talk to your company to be sure. You might have a separate deductible for wind or hail damage, and it's a good idea to know how much you'll have to pay if you file a claim.
Does Illinois home insurance cover mine subsidence?
Home insurance might cover mine subsidence, but only if you have an optional add-on coverage.
Mine subsidence happens when the ground above an underground mine shifts or collapses, causing damage to the land, homes and buildings above it.
According to the llinois State Geological Survey, more than 330,000 homes in Illinois are built above mines and could be at risk for damage. Home insurance doesn't automatically cover mine subsidence. But insurance companies are often required to offer you the coverage, and you can always ask your company or agent to add it to your policy.
How to save on Illinois home insurance
Shopping around and comparing home insurance quotes is the best way to get cheap home insurance in Illinois.
But you can save in other ways, too. Taking advantage of discounts might save you hundreds of dollars each year.
If you get a new roof, be sure to let your home insurance company know. Newer roofs can withstand wind, rain and hail better than older roofs. Because the risk of damage is lower, insurance companies often give you a discount. | |
Get quotes for your auto or motorcycle and home insurance with the same company. Bundling discounts are usually some of the biggest you can find. Plus, it's often easier to have all your insurance policies with one company if you need to make changes or file a claim. | |
Most insurance companies will give you a discount if you have an alarm system, especially if it automatically calls the police when it's set off. Alarms can give you peace of mind, too, since they can help lessen the damage from theft, vandalism and fire. |
Illinois’ surging home insurance costs
Home insurance prices have jumped by over 65% in Illinois over the last five years.
Only six other states have had rate increases higher than Illinois'. And unlike many other states, the rate increase didn't drop off in 2025.
Home insurance rate increases in Illinois, 2021-2025
Year | Avg. rate increase |
|---|---|
| 2021 | 3.60% |
| 2022 | 6.08% |
| 2023 | 14.11% |
| 2024 | 13.78% |
| 2025 | 13.86% |
Home insurance rate change data was compiled using RateWatch from S&P Global, which uses information from the National Association of Insurance Commissioners (NAIC).
Farmers has had the biggest increase over the last five years, raising rates by nearly 93%. Nationwide is a close second; its rates are 92% higher compared to five years ago.
Chubb's rates have gone up the least, but they're still about 33% higher than they were in 2021.
Frequently asked questions
How much is house insurance per month in Illinois?
Home insurance costs $2,040 per year in Illinois, on average, for a policy with $350,000 in dwelling coverage. But several home insurance companies have cheaper rates, including Allstate, State Farm and Farmers.
What is the cheapest home and auto insurance in Illinois?
Allstate has the cheapest home insurance in Illinois, but its car insurance rates tend to be high. If you want to bundle your auto and home insurance, State Farm is usually a better option. It has cheap home insurance rates, good car insurance rates and a great bundling discount
Is homeowners insurance required in Illinois?
Home insurance isn't required by law in Illinois or any other state. But if you have a mortgage on your home, your mortgage company will require you to have home insurance. Even if your home is paid off, getting a policy is a good idea. Home damage can be expensive, and home insurance helps protect your finances from unexpected repair bills.
Methodology
To find the best and cheapest home insurance in Illinois, ValuePenguin's experts got home insurance quotes from every residential ZIP code in Illinois, from 9 of the top companies in the state. The quotes are for a 45-year-old married man with no claims as a homeowner and the following coverage limits. The quotes are for a 1,700 square foot home built 50 years ago, which is representative of the average home in Illinois. New home data is for a home built in 2025.
Our experts used the following coverage limits to get average rates for a variety of home values:
- Dwelling coverage: $200,000, $350,000, $500,000 or $1 million
- Personal liability: $100,000
- Medical payments: $1,000
- Deductible: $1,000
ValuePenguin used Quadrant Information Services to get the quotes. Quadrant gets rates from publicly-available insurance company filings. Keep in mind that prices vary based on a number of underlying factors. Your quotes will likely be different.
ValuePenguin's rating of Illinois home insurance companies use average rates, coverage options, discounts, customer complaint numbers from the National Association of Insurance Commissioners (NAIC) and scores from J.D. Power's home insurance customer satisfaction survey.
Sources:
About the Author
Insurance Writer
Cate Deventer is a ValuePenguin writer who specializes in health insurance, Medicare, auto and home insurance. She's been a licensed insurance agent since 2011.
She started her insurance career working as a customer service agent for State Farm. She later moved to an independent agency, where she worked with several insurance companies and hundreds of clients. She quoted policies, filed claims and answered insurance questions. In 2021, she pivoted her career and began writing about insurance for Bankrate. She moved to ValuePenguin in 2023 and began writing about health insurance and Medicare.
Cate has a passion for helping readers choose insurance to fit their needs. She enjoys knowing that her research and knowledge help people choose insurance products that make a positive difference in their lives.
How insurance helped Cate
Cate used her health insurance knowledge to navigate a surgery in 2023. Understanding how her policy worked let her focus on recovery instead of worrying about bills.
Expertise
- Health insurance
- Medicare & Medicaid
- Auto insurance
- Home insurance
- Life insurance
Credentials
- Licensed Life, Accident & Health Insurance Agent
- Licensed Property & Casualty Insurance Agent
Referenced by
- CBS
- NBC
- Wall Street Journal
Education
- BA, Theatre, Purdue University
- BA, English, Indiana University
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
